Despar Italia Forecasts 3% Growth In Private-Label Sales In FY 2020
Despar Italia has reported sales of €3.61 billion in its financial year 2019, up 3% compared to the previous year.
Sales of private label products increased by 5.7%, to €353.8 million, during this period, accounting for 19.8% of its total grocery sales (+0.6%), with the retailer expecting this positive trend to continue.
For the current financial year, the retailer projected a 3% growth in the sales of private label products.
Speaking to daily Il Sole 24 Ore, general manager Lucio Fochesato, announced that 16 private-label SKUs will be added to Despar Enjoy range, which includes a range of ready-to-eat products.
Last year, Despar Italia invested more than €95 million in opening new stores and restructuring existing outlets.
In 2020, the company plans to invest €80 million in upgrading approximately 80 stores, as well as opening new stores and three new distribution centres in Monselice, Catania and Bologna.
The retailer is planning to expand its footprint in Central Italy and is seeking potential partners in the Tuscany, Umbria, Marche and Lazio regions.
Despar Italia has implemented several measures in light of the COVID-19 pandemic, including boosting its online services and holding the price of certain branded products until the end of the year, to ensure that customers have access to basic necessities at consistent prices.
Despar Italia also said that it will continue to focus on product quality and invest in particular in health products and the reduction of the quantities of salt, sugar and fat in its Despar branded products.
In addition, it will pay attention to environmental sustainability by reducing the plastic content of its packaging and support social initiatives and projects.
It will also continue to promote local territories and suppliers, contributing to the development of a circular economy and the Italian food supply chain.
Despar Italia operates in 16 Italian regions with 1,393 stores under the Despar, Eurospar and Interspar brands.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine.